Alpesh Narendra Shah Vs ACIT (ITAT Mumbai)
VSV Opt-Out Revives Appeal: Deemed Withdrawal Under VSV Not Fatal – Additional Evidence Ignored: Tribunal Remands Case for De Novo Disposal
Assessee filed returns declaring income of Rs.27,46,700. AO noticed unsecured loans of Rs.1,35,77,021 & cash credits of Rs.2,07,57,087, treated them as non-genuine & made additions u/s 143(3). CIT(A) sustained the additions. Before the appellate order, Assessee opted for settlement u/s 4(2) of Vivad-se-Vishwas (DTVSVA); Form-3 was issued, resulting in deemed withdrawal of appeal u/s 5(1). However, Assessee could not pay the DTVSVA tax & therefore the benefit did not materialise. CIT(A), relying on deemed withdrawal, dismissed the appeal.
Assessee argued that before opting for VSV, additional evidence—including confirmations, bank statements & loan-creditor documents—was already filed before CIT(A), but remained unexamined. Tribunal held that since Assessee ultimately did not complete VSV settlement, the appeal must be adjudicated on merits; non-consideration of additional evidence caused denial of reasonable opportunity. Tribunal admitted the evidence & restored the matter to CIT(A) for de novo adjudication, with direction to examine all documents & pass a reasoned order after giving proper opportunity. No finding was given on merits to avoid prejudice.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
